The Reserve Bank of Australia (RBA) met on the 8th of February 2023 to determine the Cash Rate for unsecured overnight loans for banks, which impacts the interest rates passed onto the mortgage home loans for Australians.

Reserve Bank of Australia increases the Cash Rate .25% from 2.35% to 2.6%

I’m sure you have seen over the past few months that Central Banks globally have been increasing interest rates. As inflation rises, Reserve Banks use interest rates to try and control consumer spending and control inflation.

Should I Fix my interest rate?

Back in Quarter 3 2021, the Reserve Bank of Australia (RBA)  announced that we could see an interest rate increase at some point in 2022, previously they had suggested no changes until 2024. Since then we still have not seen the Reserve Bank make any changes to interest rates, but we have seen banks increase their fixed rates, some three times during the last six months.

As I sat and watched the ABC news on the 19th January 2022, an interesting report came on about the reserve bank raising interest rates later in 2022.

Bear in mind that earlier in the news, the ABC had just reported on the number of deaths, hospitalisation, and new cases of Omicron, the numbers for deaths and hospitalisation were the highest Australia had seen since the pandemic.